The Real Estate Encyclopedia
What is meant by destruction of property?
Category - Home Ownership Questions - Lease & Renting FAQ's
This clause refers to the destruction of the leased property by “Acts of God”, such as flood, fire, storms or earthquake, which are out of the control of the tenant or property owner.

Most lease agreements include wording to the effect that the rent payment shall cease at the time of such destruction. The agreement also provides for the parties to the lease to terminate the lease by providing written notice within a period from the time the destruction occurred. Once the lease agreement is terminated, all obligations contained in the lease agreement are adjusted back to the date of the destruction.

If the premises are not completely destroyed but are rendered uninhabitable, the same conditions as above apply.

Only if the destruction of the premises occurs as the result of negligence or by fault of the tenant may the lease agreement not be terminated and all obligations by the tenant remain unchanged.
 
Category(s)
Home Ownership Questions - Lease & Renting FAQ's
[edit]
Home   |   About Us   |   Contact Us   |   Patrons   |   FAQ's   |   Site Map
© 2008 - All Rights Reserved.
Thank you for visiting Real Estate Wiki - the leading dictionary, directory, encyclopedia and glossary for the real estate and mortgage industries .